Devils advocate, because at a quick glance I agree with Prop 13.
IMO, it should. You are technically selling the house to yourself, and re-assessing the value for a financial benefit.
You know better than this. Refinancing a loan is not the same as selling to yourself.
For all of the arguments I have heard about getting rid of or changing Proposition 13 here, especially from liberal pundits, I have never heard anybody suggest that. That says something.
Part of the problem with prop 13 is that it has created a two tier tax system. Those in their homes and businesses a long time pay much lower rates than others.
Not trying to be a jerk, I am just simplifying it.
IMO, if you have an assessment done for your own benefit (as you would in a refi), then you should also be responsible for the repercussions.
An assessment and a refi are two different things. You mentioned a refi earlier as something that would count as a sale and trigger a new assessment similar to as if the property was sold to a new owner. By that logic, one could also say that wheb somebody totally pays off a mortgage that qualifies as a sale too.
No, just that no liberals have even suggested that. I hope none of them read this board.
Seriously, though, as I said before, Proposition 13 is the third rail of California politics. Something like that would never get passed.
Can you get a refi without an assessment?
I have had a both a streamline (because I have a VA loan) and a regular refi. In the streamline I didn’t need an assessment, but in the full refi the lender required an assessment.
However, while typing this I did think of my mistake. Assessments for tax purposes and for loan purposes are two separate animals.
You summed it up here. My refis both required an appraisal done by the bank as part of their process. I have never asked for a reassessment of my property value from the County for property tax purposes.
$800 a year is around $65 a month, not too bad compared to renters huge increases.
A woman I work with saw her rent go from $1500 to $1,725 starting in September. Last year it went up $100. That’s for a crappy 2 bedroom in an older building in a lower income neighborhood.
I think most states limit annual increases in property tax assessed values. Here, it is 3%/year (plus any permitted improvements). Property is reassessed on changes in ownership.
People here complain about increases and then discover that taxes increased more than 3% because voters approved additional taxes for new bond issues and other ‘improvements.’
New Mexicans have a well earned dislike of Texas, stemming back to the Civil War and maybe earlier.
We used to have second home in the Moreno Valley area of the northern NM mountains. That area is called Little Texas because so many of the homes are vacation homes owned by Texans (and a few Sooners). Around most holidays, Same is true of the area around Ruidoso in the southern part of the state.